District Attorney Bonnie Dumanis confirmed yesterday that her office is investigating a 2006 real estate deal involving two prominent developers who profited from the San Diego Community College District's bond-funded expansion.

Dumanis has a strict policy of refusing to comment on pending investigations, but said she decided to confirm this one after a letter from her office became public.

Her office is looking into questions that have been raised about developers Mike Madigan and Paul Nieto, who obtained a duplex at below-market rate by misrepresenting themselves as agents for the college district. They sold it to the district nine months later at a $534,375 markup, The San Diego Union-Tribune reported July 13.

Dumanis said she decided to confirm the investigation because yesterday's San Diego Reader quoted from a July 17 letter that her office sent to San Diego City Attorney Michael Aguirre, who is pursuing a civil case.

The letter, signed byChief Deputy District Attorney Julie Korsmeyer, asks Aguirre not to interfere with an ongoing investigation.

In the letter, Korsmeyer told Aguirre that his “efforts may seriously impede our investigation into potential felony charges” by causing “the tainting or loss of crucial evidence.”

Korsmeyer wrote that the case comes under the jurisdiction of the District Attorney's Office because of the amount of money allegedly involved.

The city attorney has authority to prosecute misdemeanor cases, those involving amounts less than $400, and can also take civil action. This week, Aguirre filed a civil complaint alleging that Linville Martin, the broker who handled the deal for Madigan and Nieto, made misleading and fraudulent statements when he said they represented the college district.

Aguirre said he hasn't done anything to impede the district attorney's criminal investigation.

Madigan, a consultant who worked on the Petco Park redevelopment project, declined to comment yesterday. Nieto, who resigned this week from the county's airport board, did not return calls. Nieto is a former president of the EastLake Company and currently head of Avant Housing in the Bay Area.

Constance Carroll, chancellorof the community college district, has said publicly that she referred the matter to Dumanis.

Dumanis said her office will continue its work without revealing any further details.

“When matters involving potential felonies come to our attention, we investigate. No one is above the law,” Dumanis said.